Policy Seminars

Speaker: Ashish Arora
Fuqua School of Business, Duke University, Heinz School, Carnegie Mellon, & NBER
Securing Their Future? Markets for Technology and Survival in the Information Security Industry
Date/Place/Time: Friday, October 10, 2008 1:30PM - 3:00PM
UCLA Anderson School C303
We study how markets for technology affect entry and survival in the information security industry.  Markets for technology facilitate the entry of firms that lack proprietary technology.  However, they also increase the relative advantage of downstream capabilities.  Since we do not observe the entire population of potential entrants, we test these ideas by studying survival.  The results show that a greater supply of technology increases the exit of firms, consistent with a lowering of entry barriers.  However, firms with greater marketing capability and size are less likely to exit, the greater is the supply of technology, but greater technical capability is less potent when technology supply is higher. This is consistent with the hypothesis that markets for technology enhance the relative value of marketing and scale.
Link to paper (if available): Click here for paper